Bitcoin In End Of 2018: What Will Be Further?
December 17 could be the anniversary of bitcoin reaching the record price of almost $20,000. But the staggering price fall we have been witnessing throughout 2018 is not exactly something that deserves congratulations. These 12 months were unexpectedly difficult for the crypto money market. In 2017, when BTC price reached the nine-year record of $20,000, nobody could even think about how strong its decline would be after. Even those who have never owned digital assets know about the so-called 2018 cryptocurrency crash.
It’s almost the end of 2018, and the current state of bitcoin — as well as many other cryptocurrencies — leaves much to be desired. Let's go over the journey bitcoin has made this year and try to predict what’s coming its way. Fortunately, crypto enthusiasts do not skimp on bitcoin exchange rate forecasts for 2019.
What happened to bitcoin in 2018
There were two periods in 2018, when the price of the first cryptocurrency sharply went down — in January and in November. This can be seen on the chart below: on January 6, the cost of bitcoin reached the annual maximum of $17,500.
The rise in value in the early days of the year was perceived as a signal of the further upward movement. It was expected that the price would reach December’s record level and even go higher. However, in February, the price of the most popular cryptocurrency fell to $6200. It's noteworthy that then the price leveled off. For almost half a year, bitcoin fluctuated between $6000 and $7000, but soon its value rapidly went down.
Bitcoin decline in January and November
Bitcoin price downtrend in the winter of 2018 was tightly connected with the news from South Korea. The government promised to follow China’s example and ban cryptocurrency trading on the territory of the country. This prompted investors to sell their assets. The ban never followed. The South Korean authorities only introduced stricter rules for the cryptocurrency market regulation, but the decline had already become unstoppable.
November’s price drop has several reasons. One of them is the market manipulation of the crypto money value. We have already discussed this issue in the article about automated trading. The sharp price fall by 12% occurred on November 14. The further, the worse. The number of miners decreased as mining became unprofitable, investors switched to other assets — all of these affected the crypto market. As a result, on December 7, bitcoin reached the annual minimum of $3200 losing 81.4% of its January highs.
All these numbers look incredible considering recent forecasts. The results of the Crypto Inferno poll, published in September 2018, showed that almost one third of respondents were confident that BTC would be traded at $10,000 in 2019. Well, the chances for this are extremely small; nevertheless, some opinion leaders remain quite optimistic.
Bitcoin in 2019: opinions and forecasts
Bitcoin exchange rate forecasts for 2019 and opinions regarding the future of the crypto market are divided. From mid-November to mid-December, many crypto enthusiasts expressed their ideas. Let’s review the most interesting predictions.
- Anthony Pompliano, a crypto evangelist, believes that bitcoin correction is logical and expects that the price will drop to $3000. This view is also shared by the analyst Stephen Innes who believes that the correction will stop at $2500.
- Zhao Dong is confident that BTC price will rise to at least $50,000 by 2021. According to the well-known Chinese investor, now is the best time to buy the cryptocurrency.
- Tom Lee, a crypto enthusiast from Wall Street, went even further in his forecasts. According to him, bitcoin will cost $10 million in ten years! This incredible amount is ten times bigger than the forecast of the US millionaire John McAfee who believes that bitcoin rate will touch $1 million already the next year.
It is interesting to find out whose forecasts will be more accurate in the end. We will get answers to these questions later, and now we are to continue observing the crypto sphere. Perhaps the cryptocurrency market in 2019 will surprise all of us. Who knows.